Virginia Housing Development Authority

1
Virginia Housing Development Authoritys NoVA
Preservation Initiatives

• Affordable Housing Advisory Committee
• December 16, 2005

2
Northern Virginia Housing Costs

• In March 2005, VHDAs Board approved a
  multi-faceted approach to help address the high
  cost of housing in Northern Virginia.

3
VHDA Board Actions

• Proactively keep affordable multifamily units in
  VHDAs portfolio.
• Continue to actively partner with local
  governments and non-profits to address NOVAs
  preservation needs.
• Allocate additional low-interest mortgage monies
  and subsidy resources to address Northern
  Virginias increasing cost gap.

4
I. Keeping Units Affordable

• VHDA proactively approaches its borrowers
  regarding refinancing and recapitalization of
  their properties in exchange for extended periods
  of affordability.

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Example of Recapitalization

• Hunting Creek Fairfax Co.
• Section 8 property financed by VHDA
• FCRHA is working with AHD, Inc. to preserve this
  resource by
• Assumption of the existing VHDA mortgage
• Extending affordability term by at least 23 years
  and restricting occupancy to 50 AMI
• Completing a moderate rehabilitation with equity
  from the sale of low-income housing tax credits
• Providing FCRHA with right of first refusal

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II. Active Partnerships

• VHDA continues to actively partner with local
  governments and non-profits to help carry out
  local preservation strategies.
• Our participation on the countys Affordable
  Housing Task Force and its implementation team
  are examples of how we support local affordable
  housing initiatives.

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II. Active Partnerships

• We are currently expanding VHDAs REACH Team,
  part of our Reach Virginia initiative that
  underscores our commitment to fund housing
  challenges across the state.
• VHDA is hiring additional staff to both expand
  outreach to targeted populations as well as build
  partnerships with public and private
  organizations that address priority housing
  needs.
• And, we are currently recruiting for a REACH
  Team member who will reside in Northern Virginia
  and provide full-time outreach to the region. We
  expect that person to work closely with local
  governments and housing providers to develop and
  implement new affordable housing strategies.

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II. Active Partnerships

• VHDA has created a NoVA Advisory Board.
• It serves as a forum to identify key regional
  housing issues and common areas of concern
  affecting Northern Virginia.
• This Advisory Board serves as a proactive
  communication forum between developers, local
  governments, local RHAs, nonprofit housing
  providers and VHDA.

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III. Allocating Resources

• VHDA has allocated additional mortgage monies and
  subsidy resources to address Northern Virginias
  pressing needs.
• We have created a non-competitive pool of tax
  credits for preservation projects in Fairfax
  County, Arlington, Alexandria, Fairfax City and
  Falls Church. The pool credits will be from the
  following years allocation, not to exceed 15 of
  current years per capita credits.

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III. Allocating Resources

• In addition, the geographic pool of tax credits
  for Northern Virginia remains at 19.44.
• New sources of VHDA loan funds are available
• 8 million of low-interest REACH Virginia funds
  that are tied to the non-competitive pool of
  credits and
• 10 million of REACH Virginia funding that will
  match local contributions at a very low (2)
  interest rate.

11
90/10 Program

• VHDA has partnered with the Va. Foundation for
  Housing Preservation to create this new loan
  program that provides interim interest-only site
  acquisition loans to developers of low-income
  housing.

12
VHDAs SPARC Program

• VHDAs SPARC program is intended to encourage
  innovative ideas and partnerships among local
  governments, housing authorities, non-profits and
  for-profit developers to create housing that is
  affordable to underserved populations with low
  incomes.

13
Importance of Mixed Income

• VHDA has recently been granted authority by the
  General Assembly to finance mixed income
  developments.
• Mixed income, together with increased density,
  have been important tools in making preservation
  in Northern Virginia feasible.

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Examples of Preservation Tools

• Madison Ridge Apts. Centreville
• 216 total units 98 will remain affordable
  apartments
• 118 will become condos
• VHDA provided 2 million of matching 2 financing
• VHDA also provided a 9.1 million tax exempt loan
• Fairfax provided 8.3 million from its One Penny
  for Housing program
• Developer Wesley Housing

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Examples of Preservation Tools

• 2. Gates of Ballston Arlington Co.
• More than 450 total mixed-income units
• 30 million bond allocation from VHDA
• 15 million first mortgage from VHDA
• Developer Arlington Housing Corp. (AHC)

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Examples of Preservation Tools

• 3. Monterey Apts. Arlington Co.
• 109 affordable apartments
• VHDA committed 6.3 million in taxable bond
  financing
• VHDA allocated 1.5 million in SPARC program
  funds
• Developer Silverwood Associates

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Examples of Preservation Tools

• 4. Sierra Condos Arlington Co.
• 90 new condominiums 10 set aside
• VHDA provided low-interest SPARC mortgage loans
  of 4.75
• Arlington Co. provided downpayment assistance
• Developer Silverwood Associates

18
Examples of Preservation Tools

• VHDA is partnering with local governments and
  non-profits to help preserve the more than 5,000
  affordable apartments for sale in Northern
  Virginia.
• (Winkler apartments)

19
VHDA is Highly Proactive

• VHDA actively commits people, capital and the
  subsidies it administers to the affordable
  housing problem in Northern Virginia.